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Directors & Officers Insurance

Directors & Officers insurance provides protection for the directors and officers of a company, whether private or public, in the event they are sued in relation to their job performance. D&O policies provide coverage for “wrongful acts,” the term typically includes coverage for actual or alleged errors, misleading statements, and neglect or breach of duty. The coverage in the policy is typically narrowed by a list of limitations and exclusions. Any exclusion must be examined to determine the full extent of its impact on your claim.

Directors & Officers insurance can include Employment Practices Liability and from time to time Fiduciary Liability. Employment Practices Liability usually involves discrimination or harassment lawsuits. This is a typical scenario of where a D&O policy comes into play. Another area would be a shareholder lawsuit. 

1. Why do I need Directors & Officers Insurance?

In the event of a lawsuit, claims will usually be brought against the company and its directors. Directors can be held personally responsible for decisions of the company and none of them will want their personal assets placed in jeopardy. Additionally, investors and potential directors will not be willing to serve unless they are covered under your organizations Directors & Officers insurance.